Frustrated with Tesla and GM, David Einhorn amps up pressure

Southfield

HEDGE fund manager David Einhorn has two of the most frustrating trades in the market: a long position in General Motors Co (GM) and a short against Tesla Inc. Both of Mr Einhorn's plays are in dire need of a catalyst. Despite record earnings, GM's stock is no higher than its 2010 initial public offering price. And Tesla, which already burned through about half the cash it raised in the first quarter, is up more than 40 per cent this year.

So he's ratcheting up rhetoric on the two automakers. With Tesla, Mr Einhorn has limited his aggression to a shot at its ever bullish shareholders, whom he calls "hypnotised" by chief executive Elon Musk.